Social Security (Benefits Adjustment) and Income Tax (Minimum Family Tax Credit) Amendment Bill
This bill changes how main benefits (like Jobseeker Support and Sole Parent Support) are increased each year. Right now, benefits go up in line with average wages. This bill switches that so benefits go up in line with the cost of living instead — measured by something called the Consumers Price Index, which tracks how much everyday things like food and rent cost. It also slightly raises a tax credit that helps low-income working families stay better off in work than on a benefit.
What this affects
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People on main benefits will have their payments adjusted each year based on how much prices have gone up, rather than how much wages have gone up.
Adjustments under section 453 are based on any percentage movement upwards in the Consumers Price Index (All Groups) published by Statistics New Zealand
Clause 4 repeals section 452A, which requires rates of main benefits to be adjusted… based on any percentage movement upwards in average ordinary time weekly earnings
amends section ME 1(3)(a) to increase the prescribed amount from $34,216 to $35,204
Progress through Parliament
Have your say
Submissions open once a bill reaches the select committee stage and the committee calls for them. In the meantime, you can write to your local MP about it.
Bill text sourced from legislation.govt.nz (Parliamentary Counsel Office). Arapono’s summary and breakdown are drafted with AI grounded in that official text and reviewed by an Arapono editor for accuracy and neutrality before publishing. Arapono is non-partisan and takes no position on this bill.